CrowdStrike Holdings Inc. (CRWD) is set to release its fiscal second-quarter earnings report for 2025 on Wednesday, August 28, following a significant global outage caused by a faulty software update. As investors anticipate the company’s financial performance, they will also be keen to understand the ramifications of the incident on CrowdStrike’s business outlook.
Revenue and Profit Expectations
Analysts are forecasting robust growth for CrowdStrike in the second quarter, with revenue expected to rise to $957.6 million from $731.63 million in the same period last year. Net income is projected to increase to $49.42 million, or 20 cents per share, reflecting a significant jump from the previous year. These figures suggest continued strong performance despite recent challenges.
Impact of the Global Outage
The global outage in July, attributed to a problematic software update, is likely to be a focal point of the earnings report. Investors are looking for insights into how the incident might affect the company’s full-year revenue guidance. Prior to the outage, CrowdStrike had projected fiscal 2025 revenue between $3.98 billion and $4.01 billion. Analysts now expect this guidance to be slightly adjusted, with a consensus outlook of about $3.96 billion.
Litigation and Legal Costs
The outage has led to potential legal actions from affected customers, including Delta Air Lines, which has claimed damages of at least $500 million. CrowdStrike, along with Microsoft (MSFT), has disputed these claims. The earnings report is expected to provide updates on any ongoing litigation and the potential financial implications of legal costs.
Stock Performance
CrowdStrike’s stock has seen a modest gain of approximately 6.4% year-to-date, closing at $271.54 as of the last trading session. The company’s share price will likely be closely watched in the aftermath of the earnings report and any new information regarding the outage’s impact.
As CrowdStrike prepares to disclose its financial results, stakeholders will be keenly observing how the company navigates the fallout from the global outage and its strategy for overcoming the associated challenges.
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